\[\begin{array} { c c c c } \begin{array} { c } \text { Price level } \\ \text { (GDP deflator) } \end{array} & \begin{array} { c } \text { Potential GDP } \\ \text { (billions of 2005 dollars) } \end{array} & \begin{array} { c } \text { Real GDP supplied } \\ \text { (billions of 2005 dollars) } \end{array} & \begin{array} { c } \text { Real GDP demanded } \\ \text { (billions of 2005 dollars) } \end{array} \\ \hline 150 & 25 & 34 & 16 \\ 140 & 25 & 31 & 19 \\ 130 & 25 & 28 & 22 \\ 120 & 25 & 25 & 25 \\ 110 & 25 & 23 & 28 \end{array}\] -The table above gives data for the nation of Pearl, a small island in the South Pacific. The economy is at full employment when real GDP is

A) $25 billion. B) $28 billion. C) $22 billion. D) $31 billion. E) $34 billion. A) $25 billion. B) $28 billion. C) $22 billion. D) $31 billion. E) $34 billion.

Exam 19: Aggregate Supply and Aggregate Demand

The global economy enters a recession, thereby decreasing the level of U.S. exports. If the aggregate supply curve does not shift, then aggregate demand will , real GDP will , and the price level will .

(Multiple Choice)

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Question 21

A fall in the price level brings a in the real wage rate that profits which leads to .

(Multiple Choice)

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Question 22

Starting from a situation of full employment, an increase in aggregate demand creates and the price level.

(Multiple Choice)

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Question 23

The aggregate demand multiplier effect says that an initial increase in expenditure plans leads to an induced

(Multiple Choice)

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Question 24

Last year the price level increased from 118 to 122. The increase in the price level leads to a decrease in

(Multiple Choice)

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Question 25

-In the figure above, the shift in the aggregate demand curve from AD₁ to AD₃ could be the result of

(Multiple Choice)

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Question 26

How does a fall in the money wage rate affect the aggregate supply curve?

(Essay)

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Question 27

-In the figure above, the shift in the aggregate demand curve from AD₁ to AD₃ could be the result of an increase in

(Multiple Choice)

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Question 28

A change in the price level

(Multiple Choice)

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Question 29

How does a rise in the foreign exchange rate affect aggregate demand in the United States? Explain your answer.

(Essay)

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Question 30

________ increases potential GDP.

(Multiple Choice)

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Question 31

When cost-push inflation starts, real GDP and the price level .

(Multiple Choice)

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Question 32

As the money wage rate increases,

(Multiple Choice)

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Question 33

The aggregate supply curve slopes because a in the price level brings a in the real wage rate.

(Multiple Choice)

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Question 34

A rise in the U.S. price level brings a in the price of U.S. exports relative to imports that exports of U.S. goods, bringing in the quantity of U.S. real GDP demanded.

(Multiple Choice)

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Question 35

If European economies enter a recession,

(Multiple Choice)

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Question 36

Which of the following statements is correct?

(Multiple Choice)

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Question 37

Price level (GDP deflator) Potential GDP (billions of 2005 dollars) Real GDP supplied (billions of 2005 dollars) Real GDP demanded (billions of 2005 dollars) 150 25 34 16 140 25 31 19 130 25 28 22 120 25 25 25 110 25 23 28 -The table above gives data for the nation of Pearl, a small island in the South Pacific. The economy is at full employment when real GDP is

(Multiple Choice)

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(35)

Question 38

Because of the existence of the aggregate demand multiplier, a $10 billion change in expenditure

(Multiple Choice)

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Question 39

When the quantity of real GDP demanded exceeds the quantity of real GDP supplied, firms

(Multiple Choice)

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Question 40

The global economy enters a recession, thereby decreasing the level of U.S. exports. If the aggregate supply curve does not shift, then aggregate demand will , real GDP will , and the price level will .

A fall in the price level brings a in the real wage rate that profits which leads to .

Starting from a situation of full employment, an increase in aggregate demand creates and the price level.

The aggregate demand multiplier effect says that an initial increase in expenditure plans leads to an induced

Last year the price level increased from 118 to 122. The increase in the price level leads to a decrease in

-In the figure above, the shift in the aggregate demand curve from AD₁ to AD₃ could be the result of

How does a fall in the money wage rate affect the aggregate supply curve?

-In the figure above, the shift in the aggregate demand curve from AD₁ to AD₃ could be the result of an increase in

A change in the price level

How does a rise in the foreign exchange rate affect aggregate demand in the United States? Explain your answer.

________ increases potential GDP.

When cost-push inflation starts, real GDP and the price level .

As the money wage rate increases,

The aggregate supply curve slopes because a in the price level brings a in the real wage rate.

A rise in the U.S. price level brings a in the price of U.S. exports relative to imports that exports of U.S. goods, bringing in the quantity of U.S. real GDP demanded.

If European economies enter a recession,

Which of the following statements is correct?

Because of the existence of the aggregate demand multiplier, a $10 billion change in expenditure

When the quantity of real GDP demanded exceeds the quantity of real GDP supplied, firms

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Fiscal Policy and Monetary Policy

Filters

Exam 19: Aggregate Supply and Aggregate Demand

The global economy enters a recession, thereby decreasing the level of U.S. exports. If the aggregate supply curve does not shift, then aggregate demand will ________, real GDP will ________, and the price level will ________.

A fall in the price level brings a ________ in the real wage rate that ________ profits which leads to ________.

Starting from a situation of full employment, an increase in aggregate demand creates ________ and ________ the price level.

The aggregate demand multiplier effect says that an initial increase in expenditure plans leads to an induced

Last year the price level increased from 118 to 122. The increase in the price level leads to a decrease in

-In the figure above, the shift in the aggregate demand curve from AD₁ to AD₃ could be the result of

How does a fall in the money wage rate affect the aggregate supply curve?

-In the figure above, the shift in the aggregate demand curve from AD₁ to AD₃ could be the result of an increase in

A change in the price level

How does a rise in the foreign exchange rate affect aggregate demand in the United States? Explain your answer.

________ increases potential GDP.

When cost-push inflation starts, real GDP ________ and the price level ________.

As the money wage rate increases,

The aggregate supply curve slopes ________ because a ________ in the price level brings a ________ in the real wage rate.

A rise in the U.S. price level brings a ________ in the price of U.S. exports relative to imports that ________ exports of U.S. goods, bringing ________ in the quantity of U.S. real GDP demanded.

If European economies enter a recession,

Which of the following statements is correct?

Because of the existence of the aggregate demand multiplier, a $10 billion change in expenditure

When the quantity of real GDP demanded exceeds the quantity of real GDP supplied, firms

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Fiscal Policy and Monetary Policy

Filters

The global economy enters a recession, thereby decreasing the level of U.S. exports. If the aggregate supply curve does not shift, then aggregate demand will , real GDP will , and the price level will .

A fall in the price level brings a in the real wage rate that profits which leads to .

Starting from a situation of full employment, an increase in aggregate demand creates and the price level.

When cost-push inflation starts, real GDP and the price level .

The aggregate supply curve slopes because a in the price level brings a in the real wage rate.

A rise in the U.S. price level brings a in the price of U.S. exports relative to imports that exports of U.S. goods, bringing in the quantity of U.S. real GDP demanded.